Showing 1 - 10 of 455
We use a dynamic oligopoly model of entry and exit with store-type differentiation to evaluate how entry regulations … demand, recover variable profits, and estimate entry costs and fixed costs by store type. Counterfactual policy experiments … show that welfare increases when competition is enhanced by lower entry costs. Protecting small stores by imposing …
Persistent link: https://www.econbiz.de/10011412927
, fails to draw on the most relevant fields of economics; entry is often a misanalyzed afterthought; official information …
Persistent link: https://www.econbiz.de/10012428221
using an explicit structural model of demand and entry with potentially unpredictable product quality. Based on plausible …
Persistent link: https://www.econbiz.de/10011979989
We study the profitability incentives of merger and the endogenous industry structure in a strategic trade policy environment. Merger changes the strategic trade policy equlilibrium. We show that merger can be profitable and welfare enhancing here, even though it would not be profitable in a...
Persistent link: https://www.econbiz.de/10001771983
This paper studies how cross-sector strategic trade policy affects wages, country-wide profits, and welfare. I develop a simple model of two-country continuum-of-sectors general oligopolistic equilibrium. Demands are linear and sectors involve one domestic firm competing on quantity with its...
Persistent link: https://www.econbiz.de/10014040689
new entrants. Actual market entry, however, faces a significant barrier in the form of local franchise requirements that … are delaying entry and could postpone competition for a substantial period of time. For that reason, public policymakers … seeks to assist policymakers by measuring the impact of delayed entry on consumers. Drawing on existing data that shows …
Persistent link: https://www.econbiz.de/10014058589
We develop a theoretical model to study the effects of an ad valorem taxation regime differentiated according to product characteristics (quality) within an imperfectly competitive market. Then to test our theoretical prediction we use yearly data from the Irish automobile market during the...
Persistent link: https://www.econbiz.de/10012914084
meets entrants that enter one of the markets. We find that entry can enhance the total R&D expenditure of the incumbent firm …. That is, entry can stimulate R&D effort. Moreover, the incumbent's profit nonmonotonically changes as the number of … entrants increases. Depending on the fixed entry costs and R&D technologies, both insufficient and excess entry can appear …
Persistent link: https://www.econbiz.de/10013137368
This paper analyzes supply tariffs that discriminate between resale in different markets. In a setting with competing retailers that operate in multiple (independent or interdependent) markets, we show that, all else equal, a monopolist supplier wants to discriminate against resale in the market...
Persistent link: https://www.econbiz.de/10012899099
In this paper we argue that two important causes of welfare losses in oligopolistic markets have been neglected. We show that in models where location is endogenous, welfare losses arising from wrong locations or from lack of market coverage may be substantial despite firms competing in prices....
Persistent link: https://www.econbiz.de/10013126122